On a tip-off, the police raided a house at Mirchhoba area of the town and arrested Anwara Bibi, who allegedly trafficked girls from other states and forced them into flesh trade.
They also rescued a 13-year-old girl, who had been engaged to entertain customers, police sources said.
The girl who hailed from Purnea district of Bihar was handed over to an NGO, Childline.
The sources said the arrested woman was originally a resident of Malirbagan area of the town, but was staying in Mirchhoba in a rented accommodation from where she was running the racket.